Nordic Paper Holding AB (NPAPER) AI Stock Analysis

• Market Cap: kr3.62B
• Dividend Yield: 7.39%
• Average Volume (3M): 27.05K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.48
• Revenue Growth: 8.20%
• EPS Growth: 23.15%
• Country: SE
• Employees: 693
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 2.50
• Shares Outstanding: 66,908,800
• 10 Day Avg. Volume: 12,176
• 30 Day Avg. Volume: 27,045
• PEG Ratio: 0.01
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

Nordic Paper Holding AB scores well due to its strong valuation metrics, indicating potential undervaluation and an attractive dividend yield. Its financial performance is robust but requires improvements in cash flow management. Technical indicators show positive momentum, although caution is advised due to high stochastic levels. The absence of recent earnings call and corporate events data limits further analysis in these areas.

Nordic Paper Holding AB Business Overview & Revenue Model

Company Description

Nordic Paper Holding AB (NPAPER) is a leading Swedish manufacturer specializing in the production of kraft and greaseproof paper. The company's operations are primarily focused on providing high-quality paper products that are used in a variety of industries including food packaging, industrial applications, and consumer goods. With a strong emphasis on sustainability, Nordic Paper combines traditional papermaking techniques with innovative processes to meet the demands of a global market.

How the Company Makes Money

Nordic Paper Holding AB generates revenue through the production and sale of kraft and greaseproof paper products. The company's key revenue streams include direct sales to industrial customers who use these specialized papers for packaging and other applications. Nordic Paper's products are in demand for their durability and sustainability features, catering to industries that require eco-friendly and reliable packaging solutions. Additionally, strategic partnerships and long-term contracts with major industrial clients play a significant role in ensuring steady income. The company's focus on sustainable practices and high-quality production standards also enhances its market position and contributes to its financial performance.

Nordic Paper Holding AB Financial Statement Overview

Summary

Nordic Paper Holding AB presents a strong financial performance with solid profitability metrics and efficient equity utilization. Revenue growth is steady, though margin pressures are noted. The balance sheet is stable but slightly leveraged, posing potential risks if market conditions worsen. Cash flow management needs attention due to negative free cash flow, but operating cash flow remains robust. Overall, the company is financially sound with areas needing strategic improvements.

Income Statement

Nordic Paper Holding AB demonstrates solid profitability with a strong gross profit margin of 42.5% and a healthy net profit margin of 10.2% for the TTM. The company's revenue growth rate from the previous annual report is 1.46%, which indicates stable growth. However, the slight decline in gross profit from 2024 to the TTM suggests potential margin pressures. EBIT and EBITDA margins remain robust, supporting overall profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.01, suggesting a balanced capital structure. The return on equity (ROE) of 31.7% is encouraging, reflecting efficient use of equity capital. However, the equity ratio of 37% indicates a reliance on debt, which could pose risks in volatile market conditions. Overall, the balance sheet shows stability with some leverage concerns.

Cash Flow

Operating cash flow to net income ratio is 0.87, indicating effective conversion of earnings into cash. However, the free cash flow is negative due to substantial capital expenditures, which may impact short-term liquidity. The free cash flow to net income ratio is -0.06, highlighting the negative free cash flow. The company needs to manage its capital expenditures to improve cash flow stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.74B	4.67B	4.47B	4.44B	3.08B	2.90B
	Gross Profit
2.01B	2.40B	2.35B	2.39B	1.64B	1.68B
	EBIT
648.00M	654.00M	623.00M	676.00M	208.00M	348.00M
	EBITDA
853.00M	822.00M	763.00M	902.00M	402.00M	447.00M
	Net Income Common Stockholders
484.00M	465.00M	416.00M	566.00M	144.00M	258.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
261.00M	398.00M	496.00M	325.00M	360.00M	415.00M
	Total Assets
4.13B	4.14B	3.84B	3.63B	3.25B	2.35B
	Total Debt
1.54B	1.59B	1.23B	1.26B	1.65B	1.13B
	Net Debt
1.28B	1.19B	737.00M	940.00M	1.29B	719.00M
	Total Liabilities
2.60B	2.77B	2.64B	2.58B	2.67B	1.76B
	Stockholders Equity
1.53B	1.36B	1.19B	1.04B	584.00M	593.00M
Cash Flow		Free Cash Flow
-27.46M	-169.00M	557.00M	415.00M	228.00M	250.00M
	Operating Cash Flow
419.99M	333.00M	765.00M	560.00M	408.00M	352.00M
	Investing Cash Flow
-449.46M	-504.00M	-223.00M	-92.00M	-824.00M	-102.00M
	Financing Cash Flow
471.29K	60.00M	-346.00M	-534.00M	361.00M	-70.00M

Nordic Paper Holding AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NPAPER, the sentiment is Positive. The current price of 54.1 is above the 20-day moving average (MA) of 51.11, above the 50-day MA of 49.36, and above the 200-day MA of 49.76, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 79.98 is Negative, neither overbought nor oversold. The STOCH value of 94.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NPAPER.

Nordic Paper Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPAPER	77 Outperform	kr3.62B	7.48	33.28%	7.39%	8.20%	23.15%
HOLM.A	71 Outperform	kr62.60B	21.59	5.07%	0.77%	3.23%	-5.41%
GRNG	71 Outperform	kr13.51B	13.17	10.64%	2.52%	15.17%	3.32%
BILL	70 Outperform	kr26.34B	14.27	6.58%	3.29%	9.83%	1070.42%
SCA.B	69 Neutral	kr90.00B	24.66	3.50%	2.35%	16.88%	12.52%
STE.A	52 Neutral	kr77.34B	―		62.22%	3.93%	―
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%

Nordic Paper Holding AB Corporate Events

Nordic Paper Considers Long-Term Financing and Potential Dividend

Nordic Paper is exploring the possibility of securing long-term financing through a EUR 275 million term loan and a revolving credit facility of at least EUR 65 million. This potential financing could enable the company to consider an extra dividend, contingent on the distributable reserves, which were SEK 814 million as of December 2024. This move could impact the company’s financial strategy and shareholder returns.

Nordic Paper Holding AB Annual Meeting Resolutions

Nordic Paper Holding AB’s annual general meeting resulted in several key resolutions, including the decision not to distribute dividends for the financial year 2024, re-election of board members, and authorizations for the board to repurchase and transfer shares. These resolutions aim to enhance the company’s financial flexibility and capital structure, potentially impacting shareholder value and strategic operations.